PGA National Resort’s $163M mortgage loan transferred to special servicing

A $163 million mortgage loan on PGA National Resort and Spa in Palm Beach has been moved to special servicing for “imminent default,” Fitch ratings reported, according to the South Florida Business Journal. The loan was current in June, but was set to mature on Sept. 1 and had already used its last extension option, according to analysis firm Trepp. Trepp analyst Spencer Hollerith said it’s not unusual for a loan to go into special servicing a few months before it matures.

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PGA National owner Walton Street Capital’s financial performance has been steady, with a 2010 net operating income of $8.1 million, a 43.6 percent improvement over the prior year, the Journal said. SPGA National had net operating income of $19.4 million and an occupancy rate of 64 percent when the loan was originated in 2006.

PGA National’s net operating income for 2010 was more than four times the amount required to cover its mortgage debt, according to special servicer notes. However, the loan is interest only; it was originally made as an 80 loan-to-value based on an appraisal of $204 million. [SFBJ]